Research ArticleOpen AccessGoogle Scholar indexed
Leveraging Artificial Intelligence in Financial Risk Management: Applications in Large Financial Institutions
College of Computing, Georgia Institute of Technology, Altanta, USA
Whiting School of Engineering, Johns Hopkins University, Baltimore, USA
College of Computing, Georgia Institute of Technology, Altanta, USA
- 1 College of Computing, Georgia Institute of Technology, Altanta, USA
- 2 Whiting School of Engineering, Johns Hopkins University, Baltimore, USA
- 3 College of Computing, Georgia Institute of Technology, Altanta, USA
Journal of Financial Risk Management·Volume 14 (2025)·Pages 145–158·Published 1 April 2025·DOI10.4236/jfrm.2025.142009
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Abstract
This paper explores the transformative role of artificial intelligence (AI) in financial risk management practices within financial institutions. By leveraging machine learning and large language models, institutions can enhance their ability to detect, assess, and mitigate various types of risk. The paper presents applications of AI in market risk, credit risk, liquidity risk, and operational risk, supported by real-world case studies. It also discusses regulatory considerations, ethical implications, and implementation challenges, offering a forward-looking view on integrating AI into financial risk frameworks.
KeywordsArtificial Intelligence (AI)Financial Risk ManagementLarge Financial Institution
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